VOE.VI WACC - Weighted Average Cost of Capital

The WACC of voestalpine AG (VOE.VI) is 9.3%.

The Cost of Equity of voestalpine AG (VOE.VI) is 11.30%.

The Cost of Debt of voestalpine AG (VOE.VI) is 9.30%.

	Range	Selected
Cost of equity	10.10% - 12.50%	11.30%
Tax rate	17.00% - 24.30%	20.65%
Cost of debt	4.00% - 14.60%	9.30%
WACC	6.8% - 11.8%	9.3%

WACC

VOE.VI WACC calculation

Category	Low	High

Long-term bond rate	2.8%	3.3%
Equity market risk premium	5.7%	6.7%
Adjusted beta	1.29	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.50%

Tax rate	17.00%	24.30%
Debt/Equity ratio	0.95	0.95
Cost of debt	4.00%	14.60%

After-tax WACC	6.8%	11.8%


Selected WACC	9.3%

VOE.VI's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for VOE.VI:

cost_of_equity (11.30%) = risk_free_rate (3.05%) + equity_risk_premium (6.20%) * adjusted_beta (1.29) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.